Port Alice pulp mill creditors unlikely to get paid, trustee says

The bankrupt mill owner owes at least $272 million

PricewaterhouseCoopers (PWC), acting trustee for the closed Port Alice pulp mill Neucel Specialty Cellulose, says unsecured creditors should not expect to be paid.

Neucel was forced into bankruptcy this April after all but disappearing from Port Alice, leaving hazardous chemicals, millions in debt and hundreds of unemployed workers behind. Neucel vacated the mill in February 2019, and soon after the province had to step in to address hazardous waste which was at risk of leeching into the inlet.

The province submitted four bills for the clean-up to Neucel, which did not respond. Based on that, the court approved a bankrupcty order, assigning PWC as the bankruptcy trustee and receiver.

In a May 19 report, PWC outlined priority creditors, starting with the province which is owed $13.5 million, plus accruing interest. Second in line is Neucel’s parent company Fulida Holdings Canada, a member of Chinese-based Fulida Group, which claims $235 million.

The last secured creditor is Unifor Local 514, which is trying to collect $21 million in unpaid wages to former employees of the mill.

PWC wrote in its report that “there is no prospect of any recovery to the unsecured creditors.” This includes the municipality of Port Alice which entered a claim for $1.8 million in oustanding taxes.

For now, the massive, derelict mill site sits silent, guarded 24/7, paid for by the province.

READ MORE: Dormant Northern Vancouver Island pulp mill declares bankruptcy, owes $272 million

READ MORE: Neucel Specialty Cellulose lays off remaining workers, no written notice given

Do you have something to add to this story or something else we should report on? Email:
zoe.ducklow@blackpress.ca.


Like us on Facebook and follow us on Twitter.

Bankruptcies

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Product seized from a Victoria cannabis compassion club for a second time

The Cannabis Buyers Club has been operating on Johnson Street since 2001

Driver slapped with $483 ticket for excessive speeding in Saanich construction zone

Police traffic unit reminds drivers to slow down in McKenzie interchange

Victoria International Airport deemed the most efficient for its size

Ranking appears in a report comparing airports across three international areas

Saanich makes ALC appeal for Prospect Lake Elementary parking, portables

Council votes in favour of seeking non-farm use designation

Victoria police investigating chop-shop found in Beacon Hill Park

Police asking public to register bikes with them in case lost or stolen

Recent surge in COVID-19 cases not unexpected amid Phase Three of reopening: B.C.’s top doc

Keep circles small, wear masks and be aware of symptoms, Dr. Bonnie Henry says

Greater Victoria Crime Stoppers wanted list for the week of July 13

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

COVID-19 gives B.C. First Nation rare chance to examine tourism’s impact on grizzly bears

With 40 infrared cameras deployed in Kitasoo-Xai’Xais territory, research will help develop tourism plan with least impact on bears

NDP wants Lower Mainland MLA removed from BC Liberal caucus for alleged homophobia

BC Liberal leader, some MLAs apologize for Christian magazine ads but Laurie Throness doubles down

B.C. health officials pleased with likely extension of Canada-U.S. border closure

Health Minister Adrian Dix says the situation is ‘very serious in the United States’

Children suffer swollen eyes, burns while playing at Lower Mainland spray park

Mission RCMP are investigating incident that injured several children

B.C. NDP changing WorkSafeBC regulations to respond to COVID-19

Employers say reclassifying coronavirus could be ‘ruinous’

Statistical flaws led to B.C. wolf cull which didn’t save endangered caribou as estimated

Study finds statistical flaws in an influential 2019 report supporting a wolf cull

Beloved Island woman dies at 106

Dorothy Adair adored by the many people she met in Chemainus in two short years

Most Read